Intricon Corp. (NASDAQ:IIN) Q3 2019 Earnings Conference Call - Final Transcript

Nov 04, 2019 • 05:00 pm ET


Intricon Corp. (NASDAQ:IIN) Q3 2019 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and welcome to the IntriCon Corp Third Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would like to turn the conference over to your host, Ms. Leigh Salvo, Investor Relations. Please go ahead.

Leigh J. Salvo

Thank you. And before we begin, I would like to preface our remarks with the customary safe harbor statement. Today's conference call contains certain forward-looking statements. These statements are based on the current estimates and assumptions of IntriCon's management and are subject to uncertainty and changes in circumstances. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Actual results may vary materially from the expectations contained in today's call. Important factors that could cause such differences include, among others, those set forth under the headings, Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations in our 10-K filing for the year ended December 31, 2018.

With that, I would now like to introduce IntriCon's CEO, Mark Gorder, for a review of the Company's third quarter performance. Scott Longval, the Company's COO and CFO, will then cover the financial results in more detail, and we'll open the call for your questions.

Mark S. Gorder

Thank you, Leigh, and thank you, everyone, for joining our call today. As we enter the final quarter of 2019, our teams remain vigilant in executing against the priorities we established at the beginning of this year. In short, these priorities include: one, to meet the volume demands of Medtronic; two, to pursue business development opportunities in our Medical Biotelemetry business that leverage our core competencies and diversify our revenue base; three, to seek partnerships with best-in-class entrants in the emerging OTC hearing aid market; and four, to prudently expand our direct sales initiatives with Hearing Help Express while tempering our marketing and advertising programs.

Importantly, I am confident that we are on the right path to expanding our existing market opportunity in our two core businesses: Medical Biotelemetry and Hearing Health. As we have mentioned in the past, expanding into new markets where our strength as a microminiature device producer allows us to enhance the mobility and effectiveness of body-worn devices is key to our continued progress. I'd like to take the next few minutes to provide recent highlights in both of our core businesses and our outlook for the remainder of 2019. Scott will then provide a detailed review of our financial performance and thoughts on guidance for the year. We'll then open the call for your questions.

Starting with our Medical Biotelemetry business. Our results in the third quarter continue to reflect the impact of the timing of Medtronic's ongoing global commercial product launch of its 670G. Encouragingly, we anticipate seeing momentum of continuous glucose monitoring adoption and increased penetration in international markets commencing in the next few months following clearance in Germany and other targeted EU countries. We expect the initial ramp up to be gradual with further acceleration in 2020